Absolute Breadth IndexThe absolute breadth index (ABI) is an oscillator developed by Norman G Fosback. The oscillator is used to measure the market volatility. The indicator gives you the absolute value of the difference between the advancing issues and the declining issues. In other words it shows you how much volatility, activity, and change is taking place in the market. Below is an example of how the ABI looks on a chart. 
When the indicator is above 40% it is a bullish signal. When the indicator is below 15% it is a bearish signal for the stock. Because it is a measure of volatility the absolute value index can show you when it is hard to trade. Anything between 15 and 40% should not be traded according to this indicator. Return From Absolute Breadth Index to Oscillators
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